Decentralization in Bitcoin and Ethereum Networks

Adem Efe Gencer, Soumya Basu, Ittay Eyal, Robbert van Renesse, Emin Gün Sirer

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Blockchain-based cryptocurrencies have demonstrated how to securely implement traditionally centralized systems, such as currencies, in a decentralized fashion. However, there have been few measurement studies on the level of decentralization they achieve in practice. We present a measurement study on various decentralization metrics of two of the leading cryptocurrencies with the largest market capitalization and user base, Bitcoin and Ethereum. We investigate the extent of decentralization by measuring the network resources of nodes and the interconnection among them, the protocol requirements affecting the operation of nodes, and the robustness of the two systems against attacks. In particular, we adapted existing internet measurement techniques and used the Falcon Relay Network as a novel measurement tool to obtain our data. We discovered that neither Bitcoin nor Ethereum has strictly better properties than the other. We also provide concrete suggestions for improving both systems.

Original languageEnglish
Title of host publicationFinancial Cryptography and Data Security - 22nd International Conference, FC 2018, Revised Selected Papers
EditorsSarah Meiklejohn, Kazue Sako
Pages439-457
Number of pages19
DOIs
StatePublished - 2018
Event22nd International Conference on Financial Cryptography and Data Security, 2018 - Nieuwpoort, Belgium
Duration: 26 Feb 20182 Mar 2018

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume10957 LNCS

Conference

Conference22nd International Conference on Financial Cryptography and Data Security, 2018
Country/TerritoryBelgium
CityNieuwpoort
Period26/02/182/03/18

All Science Journal Classification (ASJC) codes

  • Theoretical Computer Science
  • General Computer Science

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